Module 2, Part 5

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From the course by University of New Mexico

International Business I

472 оценки

University of New Mexico

International Business I

472 оценки

We live in a world of intensifying global relationships, one in which international business has become the key determinant of economic development and prosperity. This course, Global Business Environment, Part I, introduces students to a fundamental understanding of the socioeconomic political, cultural, and linguistic environment in which international businesses operate. This course utilizes an inquiry-based approach to understanding country level relationships in the Global Business Environment. It surveys the global business environment by asking and answering key questions about society, the global economy, cultures, institutions and languages. The questions we will ask are: 1. What is Globalization?, 2. Is Globalization New?, 3. How do Political and Social Institutions impact National Economic Development?, 4. What is the role of Culture?, 5. What are the Gains from Trade?6. Free Trade, Free-r Trade or Managed Trade?, 7. What are Foreign Currencies and how are Exchange Rates Determined?, 8. What does the Current Global Business Environment look like? This inquiry-based approach creates reflective opportunities for students to better understand the environment in which businesses operate. Lectures are delivered in an engaging manner, which encourages reflection and inquiry.

From the lesson

Week 2

Is Globalization New?

Module 2, Intro3:37

Module 2, Part 15:05

Module 2, Part 25:28

Module 2, Part 36:43

Module 2, Part 44:34

Module 2, Part 54:31

Module 2, Part 66:29

Meet the Instructors

Doug E Thomas, Ph.D.
Professor
International Management, Anderson School of Management

Welcome back to module two.

This will be part five on, is globalization new?

We are looking at this current era of globalization that the world is

experiencing and trying to understand the whys of this current boom.

And last time, we were looking at the United States as a major, a superpower in

manufacturing and exports in the 1950s and 1960s and we saw that on this graph.

What I want to do now is look at another graph that shows the world and

world exports, not just one country like the United States.

And to see the growth that occurred or has occurred since World War II.

If you look back in the post war period that began in late 1940s early 1950s,

you see this period of very limited exports from across the world.

The exports that existed for the most part came from the United States is

what we saw at the end of last the last part of this module.

By the 1960s, as, as we said last time,

we saw great growth across the world as European and Asian

economies began to had recovered from the war, or begun to recover from the war.

And we saw new private entities growing and exports really taking off.

And so they continued to grow.

And we saw gross domestic or

product, or GDP around the world continued to grow as well.

An easy correlation to make would be that embracing trade, embracing each other,

embracing countries across borders led to economic growth.

And to some degree,

you would hope would eventual learn to greater levels of world peace.

And it can't be ignored that the major increase in exports that we saw

beginning right after World War II is also correlated with tariff rates.

Tariffs are taxes that countries put on imports and exports on each other.

And as those tariff rates have decreased, and when you have higher tariff rates,

you're basically protecting your local economy and you're isolating yourself.

And as you lower those tariff rates, you're embracing other parts of the world,

embracing their their products and services.

We see this this boom in exports and growth.

And so, average tariff rates across the world, on the part of developed countries,

has decreased from 25% in the aftermath of World War II,

to by the early late 80s and early 90s to about, to I guess that's about 5%.

And so this is very important in understanding where we are.

The world by the late 70s and 1980s began to wonder

which one of these models as the Cold War continued the market oriented model or

the social oriented model would be better for economic growth and success.

And it was because the work and continued wars, and continued economic problems.

In the 60s, we saw conflicts like Vietnam, we saw civil wars,

we saw major inflation we saw lots of unemployment, we saw stagnant growth.

And so, political leaders continued to wonder which one of

these models would work best.

Do we continue to embrace policies that are more, more, more market oriented for

example lower tar, tariff rates that encourage exports?

Do we embrace openness, open borders?

And what will be the impact of that?

And they did in fact do that by the 19 early 1980s

the world embraced increasingly for the most part more market oriented policies.

And you can see since the 1980s in additional,

major boom in trade represented by the red line and

overall prosperity measured by gross domestic product.

Since the 1980s, we've seen a sharp inflection point that

is really the beginning of where we are today.

And so that ends part five of module two, is globalization new?

Next time in part six, we'll finish up and

talk a little bit more about where we are today in today's globalized world.

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